A4:

In terms of press­ing chal­lenges, re­tail en­vi­ron­ments that used to power our growth are now slow­ing and we are again fac­ing head­winds as we try to reach more shop­pers at the point of pur­chase. It is clear that for us to re­gain our mo­men­tum we will have to fo­cus on driv­ing our power brands very ag­gres­sively in the chan­nels that are suc­cess­ful: e-com­merce, con­ve­nience stores and small su­per­mar­kets and small stores. These re­tail en­vi­ron­ments are very dif­fer­ent to those we used to fo­cus on. It will take time to re­train our sales or­ga­ni­za­tion and our com­mer­cial teams, and adapt our mar­ket­ing plans and our prod­uct port­fo­lios, but we are mov­ing fast.

Our plan comprises three key strate­gies: 1. Ac­cel­er­at­ing the growth of our core busi­ness, which is our global, iconic Power Brands; 2. Fill­ing in con­sumer and ge­o­graphic white spa­ces where we do not have a pres­ence to­day; 3. Build­ing our sales and routeto-mar­ket ca­pa­bil­i­ties, in­clud­ing e-com­merce. At the same time, we in­tend to be­come the global leader in well-be­ing snacks, with 50 per­cent of our port­fo­lio in the well-be­ing space by 2020— up from more than onethird to­day. We are sim­pli­fy­ing the in­gre­di­ents and en­hanc­ing the nu­tri­tional pro­file of our core prod­ucts while also fo­cus­ing on break­through in­no­va­tions. Over the next five years, we ex­pect to fo­cus 70 per­cent of our new prod­uct de­vel­op­ment ef­forts on well-be­ing snacks.